Card-only gaming costing Star casinos and creating an uneven playing field, says CEO

The days of walking into a casino and exchanging cash for chips are ending, as Star Entertainment moves to card-only gaming — to the fury of shareholders and members.

Shareholders of Star Entertainment had much to be unhappy about going into the company’s AGM in Brisbane on Thursday, but there was one issue which dominated questions.

The shift to card-only gaming at Star in Sydney has clearly incensed shareholders, many of whom are platinum members of Star casinos, thanks to their patronage of the venues.

“Why were we not consulted and given a say on going cashless at Star casinos?”, shareholders demanded to know in the first question of the well attended meeting.

CEO Steve McCann explained the move was not a Star initiative but a legislative requirement of the New South Wales and Queensland governments being gradually phased in.

Since being rolled out in Sydney on August 19, the Star had seen revenue slump 15.5 per cent compared to the period prior to its introduction.

The decline was due to the fact it was no longer possible to simply walk into a casino from the street, and exchange a wad of cash for chips or tokens.

The new rules mean patrons of Star casinos have to prove their identity and fill out a detailed questionnaire about the source of their finances before taking a seat at a poker machine or card table.

Irate shareholder Ben Timmins said the questionnaire went so far as to ask members to declare their winnings from casinos, horse or dog races over the past five years; the value of any gifts they had received in the same period, and the exact value of any inheritance.

“These are just three of the questions, and the penalty for refusing to answer is a life ban from Star casinos,” said Mr Timmins.

“I’ve got nothing to hide, as do most people, however I will not be supplying that information to Star or any related companies.”

The new Star Casino at Queens Wharf in Brisbane. Picture: Nigel Hallett

Card holders were restricted to spending $5000 per person per day at casinos, with the limit to be further reduced to $1000 per day next August.

Mr McCann said it was clear the rules were having a significant impact on “player enjoyment” and their ability to “move from table to table”.

“I’m hopeful we will have a bit longer in Queensland before we’re required to introduce mandatory card and cashless gaming and do it better than in Sydney, so the impact is less,” he said.

“I do believe part of the problem is the initial experience and shock, and the fact we’re not as good at doing it as we should be. We’re improving it, and we will improve.”

Star chair Anne Ward said the company was looking for a new director with experience in complex technology transformation.

“With our Sydney implementation (of card-only gaming) new hardware has had to be created, and new software has had to be created so we’re learning along the way,” Ms Ward said.

The aim of the tough legislation was to eliminate financial crimes such as money laundering, but Mr McCann conceded it was unlikely to happen when the rules did not yet apply to all venues where gaming occurred.

“It’s fair to say we’re not currently operating on a level playing field,” he said.

“The regulations around mandatory card gaming and a reduction in cash limits have not been implemented across the entire market, so they’re unique to New South Wales and Queensland casinos.”

Shareholder Stephen Mayne asked whether Star was putting pressure on governments over the issue, saying it was “ridiculous casinos are being forced to go cashless”.

“I won’t comment on Mr Mayne’s comment that it’s ridiculous for casinos to go cashless without hotels and clubs having to do the same,” said Ms Ward.

“It will roll out progressively to other sectors. Most of our discussions are with our regulators and to a lesser extent with governments, and we’re not publicly making the case.”